Toys And Games in China
Euromonitor International's Toys And Games in China report offers a comprehensive guide to the size and shape of the traditional toys and games and the video games market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market- be they new product developments, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Tables: 37 | Publication date: Sep 2008
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Executive summary
Toy industry booms in cities
In 2008, China’s domestic toys and games market experienced two-digit growth, while consumers have been really enthusiastic to buy such products. There has been rising demand in the market for pre-school, educational toys, action toys and video games software. Despite growth in the market in tier 1 and 2 cities, prospects for sales in villages and remote cities are less good, since people tend to spend money on necessities rather than toys and games.
Government is tightening safety standards
The toys produced by domestic players are subject to rigorous and repeated quality testing. The China Certification Committee (CCC) has put great pressure on medium and small-sized business to improve safety, for example by standardising their practices concerning safety warnings relating to hidden hazards, age limits and the instructions supplied with toys sold in the domestic market. At the same time, the government has laboratories equipped with state-of-the-art technology and strict management procedures to ensure the safety and durability of products approved for the export and internal markets. Some suppliers have been forced out of the market, as their products did not comply with these new safety standards, which also gave opportunities for companies that improved the quality of their products to display healthy growth in sales. After the new regulations came into force, the number of toy products available in the market reduced, and some small toy-makers had to change their production lines.
Video games much hotter than traditional toys
Traditional toys are negatively affected by increasing costs, which is leading to a slow-down in growth of the sales of traditional toys. Sales of video games have been growing faster, however, since they are not affected by the above issues but driven by the booming market in online games. Furthermore, people are more interested in electronic video games than in traditional toys. Meanwhile, a strong distribution network and heavy advertising have led to an increase in the household penetration rate and the growth of loyalty among games consumers.
Emergence of more market opportunities
After years of development, the market had shifted to the high end, as people became more willing to buy more expensive goods that indicate a high social status. The application of high technology and intelligent technology, more human features and brand-building are new directions in which the traditional toys and games industry may develop. The toy-makers are adapting to a more mature market by increasing their product offerings and improving the quality of their products. Their distribution channels have also diversified, as they offer more value-added services.
Stable growth potential
The overall market will continue to display stable growth over the forecast period. While the rural areas have always been a potential market for traditional toys and games, they are expected to become popular in these areas as China’s urbanisation continues. Pre-school toys saw the fastest rate of growth within traditional toys and games in 2007, and again in 2008, which reflected the low base level of their sales, and this strong growth is expected to continue. There will be solid demands in affluent rural areas, and video games in particular are expected to remain popular in these areas.
Table of contents
TOYS AND GAMES IN CHINA : MARKET INSIGHT
EXECUTIVE SUMMARY
Toy industry booms in cities
Government is tightening safety standards
Video games much hotter than traditional toys
Emergence of more market opportunities
Stable growth potential
KEY TRENDS AND DEVELOPMENTS
Booming economy fuel overall sales
Quality improving as a result of increased purchasing power
Booming video games market
Unbalanced regional distribution of the industry
MARKET DATA
Table 1 Sales of Toys and Games by Sector: Value 2003-2008
Table 2 Sales of Toys and Games by Sector: % Value Growth 2003-2008
Table 3 Sales of Toys and Games by Distribution Format: % Analysis 2003-2008
Table 4 Toys and Games Company Shares by Value 2004-2007
Table 5 Forecast Sales of Toys and Games by Sector: Value 2008-2013
Table 6 Forecast Sales of Toys and Games by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CHINA
GUANGDONG ALPHA ANIMATION & CULTURE CO LTD - TOYS AND GAMES - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Guangdong Alpha Animation and Culture Co. Ltd: Key Facts
Summary 3 Guangdong Alpha Animation and Culture Co. Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 4 Guangdong Alpha Animation and Culture Co. Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 5 Guangdong Alpha Animation and Culture Co. Ltd: Competitive Position 2007
MEISIDA ELECTRONIC TOYS CO LTD - TOYS AND GAMES - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Meisida Electronic Toys Co Ltd: Key Facts
Summary 7 Meisida Electronic Toys Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 8 Meisida Electronic Toys Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 9 Meisida Electronic Toys Co Ltd: Competitive Position 2007
SHANDA INTERACTIVE ENTERTAINMENT LTD - TOYS AND GAMES - CHINA
KEY FACTS
Summary 10 Shanda Interactive Entertainment Limited: Key Facts
Summary 11 Shanda Interactive Entertainment Limited: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 12 Shanda Interactive Entertainment Limited: Competitive Position 2007
THE9 LTD - TOYS AND GAMES - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 The9 Limited: Key Facts
Summary 14 The9 Limited: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 The9 Limited: Competitive Position 2007
TSINGHUA TONGFANG CO LTD - TOYS AND GAMES - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Tsinghua Tongfang Co., Ltd.: Key Facts
Summary 17 Tsinghua Tongfang Co., Ltd.: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 18 Tsinghua Tongfang Co., Ltd.: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 19 Tsinghua Tongfang Co., Ltd.: Competitive Position 2007
TRADITIONAL TOYS AND GAMES IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 7 Sales of Traditional Toys and Games by Subsector: Value 2003-2008
Table 8 Sales of Traditional Toys and Games by Subsector: % Value Growth 2003-2008
Table 9 Sales of Traditional Toys and Games by Distribution Format: % Analysis 2003-2008
Table 10 Traditional Toys and Games Company Shares by Value 2004-2007
Table 11 Forecast Sales of Traditional Toys and Games by Subsector: Value 2008-2013
Table 12 Forecast Sales of Traditional Toys and Games by Subsector: % Value Growth 2008-2013
VIDEO GAMES IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 13 Sales of Video Games by Subsector: Value 2003-2008
Table 14 Sales of Video Games by Subsector: % Value Growth 2003-2008
Table 15 Sales of Video Games by Distribution Format: % Analysis 2003-2008
Table 16 Video Games Company Shares by Value 2004-2007
Table 17 Forecast Sales of Video Games by Subsector: Value 2008-2013
Table 18 Forecast Sales of Video Games by Subsector: % Value Growth 2008-2013